Last year F was accident-prone.He knocked over an expensive vase, shattering it; left an old radio on that caused a fire that destroyed his office equipment; and wrecked his bike.The bases and fair market values of the property are shown below.Assuming F does not elect to replace the vase or bike, and that he receives $5,000 for the vase, $25,000 for the office equipment, and $25 for the bike, what must he report?
A)$7,900 capital gain
B)$8,000 capital gain
C)$8,025 capital gain
D)$7,980 capital gain
E)Some other amount

Question

Last year F was accident-prone.He knocked over an expensive vase, shattering it; left an old radio on that caused a fire that destroyed his office equipment; and wrecked his bike.The bases and fair market values of the property are shown below.Assuming F does not elect to replace the vase or bike, and that he receives $5,000 for the vase, $25,000 for the office equipment, and $25 for the bike, what must he report? 
A)$7,900 capital gain 
B)$8,000 capital gain 
C)$8,025 capital gain 
D)$7,980 capital gain 
E)Some other amount

Quizplus · Accepted Answer

The Answer of Last year F was accident-prone.He knocked over an expensive vase, shattering it; left an old radio on that caused a fire that destroyed his office equipment; and wrecked his bike.The bases and fair market values of the property are shown below.Assuming F does not elect to replace the vase or bike, and that he receives $5,000 for the vase, $25,000 for the office equipment, and $25 for the bike, what must he report? 
A)$7,900 capital gain 
B)$8,000 capital gain 
C)$8,025 capital gain 
D)$7,980 capital gain 
E)Some other amount

Last Year F Was Accident-Prone